After the downward correction experienced in scrap prices in past weeks, rebar prices also recorded a softening. While rebar prices subsequently increased a little due to the rally in scrap prices, new rebar offers are indicating a decrease. Merchant bars, especially merchant bar exports, for a while were not influenced by these various movements, since July and August shipments were mentioned in particular for NPU and NPI materials. However, merchant bars have this week begun to see a downward correction.
Similarly, as we mentioned in our billet analysis, billet prices have also experienced a slowdown. Last week, Ukrainian producers started to give offers at levels of $505/mt FOB Black Sea and above. Turkish billet prices in the domestic market were at $535-545/mt. There was not much interest in these prices. Although Isdemir announced its billet sales price for July as $545/mt, sections producers have not shown interest in this price. The most important development on Monday is the price announcement made by Kardemir: this Turkish producer has reduced its billet prices from $560/mt to $512/mt - a decrease of $48/mt.
The domestic merchant bar market is currently calm, influenced by the present climate of political uncertainty in Turkey. Section prices on a US dollar basis have not changed in the domestic market due to the two-month stagnation in the market. However, price changes on a TRY basis are set according to the US$/TRY exchange rate. Although the demand for NPU and NPI is good compared to that for angle and flat bar, there has also been a slowdown in NPU and NPI demand. There is lack of supply of NPU and NPI in the domestic market since they are being allocated for exports. Domestic section prices may decrease due to the fall experienced in billet prices this week.
Last week, angle offers were at $650/mt FOB, while flat bar offers were at $660/mt FOB. Merchant bar offers may indicate a decrease since Kardemir has this week reduced its billet prices.